Mumbai: RBL Bank Ltd, formerly known as Ratnakar Bank, reported a 59% year-on-year increase in net profit for the December quarter, benefiting from higher interest and non-interest income.

The bank’s profit rose to Rs128.69 crore in the three months from Rs81.05 crore a year ago.

Net interest income, the difference between interest earned on loans and that paid on deposits, rose 45% from a year ago to Rs321.58 crore in the fiscal third quarter. Non-interest income including fees and commissions rose 66% year-on-year to Rs182.26 crore.

The net interest margin for October-December widened to 3.38% from 3.24% a year ago.

Gross non-performing assets (NPAs) as a ratio of gross advances as of 31 December were at 1.06%, lower than 1.1% as of 30 September. The net NPA ratio at the end of the third quarter was 0.52%, down from 0.55% in the second quarter.

Net advances as on 31 December were at Rs26,773.12 crore as against Rs18,299.66 crore a year ago. Deposits grew to Rs30,005.14 crore as of 31 December, 2016 from Rs20,847.44 crore a year ago. Current account savings account (CASA) deposits grew 82.85% during the same period, the bank said in a statement.

“During the last two months of the third quarter, we were able to reprice some of our fixed deposits lower. In a period when you are getting a good flow of low-cost deposits, you don’t want to end up with a lot of liquidity without places to deploy it,” said Rajeev Ahuja, chief operating officer, RBL.

However, these price corrections were only short term and were already reversing, Ahuja clarified.

RBL Bank stock closed at Rs368.35 a share on the BSE, down 2.51% from a year ago.